The Brazilian government has chosen to downgrade the level of bilateral relations with Argentina following President Javier Milei’s repeated attacks against Brazilian President Luiz Inácio Lula da Silva and the Supreme Court.

The Ministry of Foreign Relations has decided that Brazil’s ambassador to Buenos Aires, Julio Bitelli, should not return to Argentina as long as Milei’s attacks continue. The insults were deemed an unacceptable breach of respect in bilateral relations.

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Brazil will now be represented in the neighboring country by a chargé d’affaires, a lower-ranking position that reflects this diplomatic downgrade.

On July 26, Brazilian Ambassador Bitelli was recalled to Brasília after Milei insulted President Lula at a convention of the Liberal Party (PL), which nominated Senator Flávio Bolsonaro to run for president.

On that occasion, Milei called Lula a “convict” and attacked Supreme Court Justice Alexandre de Moraes, the presiding judge in the trial that sentenced Flávio’s father, former President Jair Bolsonaro, to 27 years in prison for attempting a coup d’état.

“There is no precedent for a foreign president who, while on Brazilian soil, hurls insults and offenses at the head of state, democratic institutions – including the judiciary – and the Brazilian people,” the Foreign Ministry countered in a statement.

In the days following the PL convention, Milei’s attacks against Lula continued with insults such as “thief” and “socialist scum.” Milei also continued to insult the Supreme Court in public appearances.

These repeated attacks have prompted Brazil to decide not to send Ambassador Julio Bitelli back to Argentina. The decision is expected to remain in effect as long as the insults continue.

Argentina

In a statement posted on social media, the Argentine government lamented the Brazilian government’s “unilateral” decision, arguing that it was based on “purely ideological” considerations.

“We have never responded to a political disagreement with an institutional measure. This is the principle that Argentina upholds today,” said the Argentine Ministry of Foreign Affairs.

The Brazilian government has argued that it maintains diplomatic relations with governments of all ideological persuasions, and that the insults were the reason for downgrading diplomatic relations.

Repercussions

The Brazilian decision made headlines in the neighboring country’s newspapers. Clarín, one of Argentina’s most established newspapers, described the decision as a “harsh diplomatic sanction.”

The newspaper Infobae reported that relations between the two countries are in an “unprecedented crisis,” noting that the measure is causing concern among Argentina’s business community.

Brazil is Argentina’s main trading partner, accounting for 12.6 percent of the country’s goods exports — ahead of China at 9.9 percent and the US at 9.8 percent – for January through June of this year, as per data from Argentina’s National Institute of Statistics and Censuses.

In 2025, Argentina ranked as the third-largest destination for Brazilian exports, accounting for USD 18.1 billion in goods sold, which represents 5.2 percent of Brazil’s total exports. The data comes from Brazil’s Ministry of Development, Industry, and Trade.

Brazil is among the 29 nations that signed the founding document of the World Artificial Intelligence Cooperation Organization (Waico), announced in July of this year, with its headquarters in Shanghai, China. The initiative aims to develop global AI governance through open-source models, which allow any company or organization to adapt the technology.

The China-led initiative contrasts with the United States’ plan for the future of AI, known as Pax Silica, which brings together “trusted allies” of the White House to control supply chains for semiconductors, critical minerals, and energy.

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Artificial intelligence experts consulted by Agência Brasil point out that Waico represents an opportunity for Brazil to develop its own digital sovereignty. However, to achieve this, Brazil should “do its homework,” as explained by sociologist Sérgio Amadeu da Silveira, a professor at the Federal University of ABC (UFABC), in São Paulo.

The sociologist maintains that Brazil is a sufficiently large country, with university research centers unlike those found in most other nations – which places the country in a privileged position for AI development.

“Brazil can find a path to development that is more autonomous and more independent. Without a doubt, Brazil should strengthen its alliance with China, but we have to develop our own strategy,” he said.

Professor Amadeu added that, if Brazil does not develop its critical AI infrastructure – while also maintaining sovereignty over the data produced in the country – it will not be possible to benefit from cooperation with China to absorb that knowledge.

As an example, the professor said that if he were to receive BRL 10 million to develop AI projects at the university, he would have to spend BRL 5 million just on cloud storage contracts provided by big tech companies like Amazon, or even by the Chinese company Huawei.

“I don’t have the infrastructure available here that would allow researchers, universities, and the government itself to spend resources building expertise and infrastructure in our country for data processing and storage, which would give us significant computing power – instead of propping up foreign big tech companies,” he pointed out.

Ettore Arpini, an expert in AI governance and founder of Plures – an organization that supports the training of professionals in AI – emphasized that Brazil is well-positioned to be a key player in the geopolitics of AI because of its ability to navigate between Chinese and Western initiatives.

“The most important thing is for Brazil not to view AI as a sector-specific issue. An AI policy alone is not enough, just as simply regulating this market is not enough. We must understand it as a geopolitical and economic advantage, and also as a potential driver of prosperity for our people – an opportunity that rarely arises in a country’s history,” he concluded saying.

Brazil in the geopolitics of AI

The Brazilian government has maintained that the country cannot become dependent on any single model – whether Chinese or Western – arguing that it has engaged in dialogue with all initiatives that could help Brazil achieve digital sovereignty.

In multilateral forums, Brazilian President Luiz Inácio Lula da Silva has argued that AI cannot “become the privilege of a few countries or a tool for manipulation in the hands of billionaires.” According to the president, “we need intergovernmental governance of AI, in which all governments have a seat at the table.”

Experts have emphasized that AI is a technology that will permeate all sectors of economic life, just as electricity and the internet did.

Present at the launch of Waico in Shanghai, United Nations (UN) Secretary-General António Guterres stated that AI could be “humanity’s greatest opportunity in the 21st century,” but it “could also become one of its greatest risks.”

“The technology that will shape humanity’s future must be shaped by all of humanity. It cannot be governed by a handful of countries or a handful of companies. All nations need a seat at the table,” said the UN chief.

Pax Silica

The vision of an AI governed by all countries runs counter to the US vision for the future of technology, which Washington views as one of the pillars of the global power structure. For this reason, the White House is attempting, through Pax Silica, to control the supply chains for critical minerals, data, and energy that enable AI to function.

The Trump administration’s view on the matter was outlined in an article published by US Under Secretary of State for Economic Affairs Jacob Helberg.

He criticized the concept of “digital sovereignty” advocated by the UN and several countries, including Brazil.

“[The UN] presses toward a world in which every country commands what the Secretary-General’s own reports call an ‘irreducible minimum’ of artificial intelligence—its own computers, its own data, its own models, raised at home and owned at home,” he wrote.

Helberg adds that the idea is appealing but counterproductive. In his view, other countries and governments will reap greater benefits if they take advantage of the infrastructure already built by tech giants.

“[If they follow the path laid out by the UN, countries]  will have achieved not so-called “digital sovereignty” but a kind of synchronized mediocrity—a planet of subscale clones, each heroically reconstructing last year’s breakthrough while the breakthrough itself moves on without them. While others rebuild the present, American firms will be inventing the future,” the US under secretary of state argued.

Brazilian Foreign Minister Mauro Vieira on Sunday (Jul. 26) recalled Argentina’s ambassador to Brazil, Daniel Raimondi, and conveyed to the foreign diplomat the Brazilian government’s condemnation of remarks made by Argentine President Javier Milei during the head of state’s visit to São Paulo.

“There is no precedent for a foreign president who, on Brazilian soil, hurls insults and offenses at the head of state, democratic institutions – including the judiciary – and the Brazilian people,” a note from the Foreign Ministry reads.

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In diplomacy, the act of recalling a foreign ambassador expresses dissatisfaction with the government he represents.

Milei came to Brazil to attend the launch of the presidential campaign of Senator Flávio Bolsonaro of the Liberal Party (PL), the son of former President Jair Bolsonaro, who is in prison and has been convicted of attempting a coup d’état, among other crimes.

In his speech at the event, the Argentine president insulted President Luiz Inácio Lula da Silva by calling him, among other things, a “convict.” In addition, he called the Brazilian Supreme Court Justice Alexandre de Moraes – the judge presiding over the onetime president’s coup case – a “bald piece of trash.”

In addition to summoning Argentina’s ambassador to Brazil, the Brazilian Foreign Ministry also recalled the Brazilian representative in Buenos Aires, Julio Bitelli. A meeting between Foreign Minister Mauro Vieira and Bitelli is expected to take place in the coming days.